Taxes in Round Rock
Texas has no state personal income tax -- a statewide fact restated briefly here -- and Round Rock's combined sales tax rate is 8.25%, the maximum allowed under Texas law. The real tax story for most Round Rock households, though, is property tax: a combined city, school-district, and county rate that lands toward the higher end of the Williamson County range the base record already flags, because Round Rock ISD's own tax rate runs above the county average.
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Learn moreNo State Income Tax and an 8.25% Sales Tax (Briefly Restated)
Texas is one of a small number of U.S. states with no state personal income tax, a structural fact that applies statewide, not specifically to Round Rock. Round Rock's combined sales tax rate is 8.25% (6.25% state plus 2% local add-ons), per multiple sales-tax rate aggregators (Avalara, SalesTaxHandbook) reviewed August 2026 -- the maximum combined rate allowed anywhere in Texas, so Round Rock sits at the statutory ceiling rather than being an outlier city pushing rates unusually high. A small number of sub-areas within Round Rock may see slightly different effective rates due to overlapping special tax districts.
Property Tax Rates: City, School District, and the Combined Effective Rate
The City of Round Rock's own 2026 tax rate is cited around $0.385-$0.423 per $100 of assessed value (no-new-revenue and voter-approval rates, respectively, per the city's own 2026 tax rate notice), while Round Rock Independent School District -- which also covers parts of Cedar Park, Pflugerville, and Hutto -- certified a rate around $0.945 per $100. Layered together with Williamson County, Austin Community College, and any applicable MUD (municipal utility district) fees, the combined effective rate for a Round Rock property is cited around 1.9%-2.4% of appraised value, per Grewal RE Group's Williamson County property tax guide -- toward the higher end of the county's broader 1.61% blended countywide estimate already flagged in the base record, because Round Rock ISD's rate specifically runs above the county average. On a $400,000 home, that works out to an estimated $7,200-$9,600 in annual property tax before exemptions.
Homestead Exemption and the 10% Appraisal Cap (Statewide, Applies Fully Here)
Texas's standard homestead exemption for school-district property taxes was raised from $100,000 to $140,000 starting the 2026 tax year, per a November 2025 statewide ballot measure -- a real, recent reduction in many homesteaded Round Rock owners' effective bills. Separately, Texas Tax Code Section 23.23 caps the annual increase in a homesteaded property's appraised value (for tax purposes) at 10% of the prior year's appraised value plus the value of any new improvements, regardless of how much the home's actual market value rises in a given year -- a real protection during periods of rapid local appreciation, though a new buyer's home is reappraised at full market value in the year of purchase rather than inheriting the prior owner's capped value.
Over-65 and Disabled Homeowner Exemptions
Homeowners age 65 or older, or those with a qualifying disability, are eligible for an additional exemption on top of the standard homestead exemption, and their school-district property taxes are frozen at the amount owed the year they first qualify -- a genuinely valuable protection for anyone retiring in place in Round Rock. See the retiring topic page for more on how this factors into a retirement-specific relocation decision.
Key takeaways
- No Texas state income tax applies statewide; Round Rock's combined sales tax rate is 8.25%, the maximum allowed under Texas law.
- City of Round Rock's 2026 rate runs about $0.385-$0.423 per $100 assessed value; Round Rock ISD certified around $0.945 per $100 -- combined with county, ACC, and possible MUD fees, the effective rate lands around 1.9%-2.4%, toward the higher end of the base record's broader 1.61% countywide estimate.
- The school-district homestead exemption rose from $100,000 to $140,000 starting the 2026 tax year, and Texas caps homesteaded annual appraisal growth at 10%/year -- both real, recent protections, though new buyers are reappraised at full market value.
- Homeowners 65+ or disabled get an additional exemption and a school-tax "ceiling" freeze -- a genuine benefit for anyone retiring in place; Texas levies no real estate transfer tax on sales.
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